have to wait. >> and to the receipt -- european central banks the taps the interest rates, sending stocks higher. >> it has been a fast-moving story this thursday, the future of the greek government, its place in the eurozone, and the stability of the euro are all up into the air. george papandreou spoke to his government thursday, vowing not to step down. he said he will allow a vote of confidence to go forward tomorrow. but he has not answer the other burning question, will the greek people decide on the eurozone bailout? the finance minister has said there will not be a referendum. if you are confused, you are not alone. our coverage begins with papandreou's speech. >> a defiant papandreou spoke
before his own specialist -- socialist party. he said he would not resign and rejected any idea on the country according deerow. -- quiting the euro. >> this debt that we have achieved is a lot bigger than the sacrifices we have had to make. it is a clear indication of the greek people and all of you in parliament and of us, in government, for all of the difficulties that we had, our stamina in the threats against us, it is a recognition of the policies we have made. >> papandreou is in danger of not losing the vote of confidence on friday. for its part, the greek opposition party has renewed its call for snap elections. >> i call for an interim government, whose sole purpose will be to hold fresh elections
and get thout of the e.u. bailot agreement. >> if papandreou does, in fact, lose the confidence vote, it would be up to the greet president to appoint a caretaker government. >> will go to our athens correspondent, natalie. good evening to you. do we know any more this thursday evening? house papandreou colt -- pulled back completely from a referendum? >> it appears the referendum is now part of greece's embarrassing history, if you like. he made mention of it in his speech today, and then sort of retracted his statement,
confirmed by his finance deputy and subsequently confirmed by other finance ministers, that the referendum is no longer an issue. >> we have had so many reports coming in this evening. thank you for confirming. is this all about national politics in greece? is there a struggle for power going on in the government? >> what is essentially happening here is the prime minister suffered a mutiny. many of his mps have openly question his leadership, calling for him to step down and calling for a coalition government. he is clinging to power. he now has the backing of his finance minister. that is what the finance minister appeared to be doing today. however, the coalition government is not an option. the leading opposition figure
said no to a coalition, yes to elections, and jazz to a caretaking government that would secure the financing of greece until the elections are held and the new government is elected. >> what about papandreou's future. the opposition is calling for him to resign. >> it will be determined tomorrow. his political survival or not will be determined tomorrow. the vote of confidence is still on. then we will have an idea of who will be guiding this financial reform. >> we really need a resolution by tomorrow, don't we? because the greek foreign minister said they need their next installment or they will go into bankruptcy. >> absolutely. this is the never-ending saga,
really, about whether great will get its 6 billion neera tranche that is keeping it -- 6 billion euro to raunch that is keeping it afloat. -- tranche that is keeping it afloat. it was to happen in november. now we are hearing is being pushed back to mid december. we will see whether greeks get their pensions and wages by december. >> lots of questions that remain to be answered. >> natalie, thank you. the situation in greece and the eurozone debt crisis dominated the beginning of the g-20 summit in france. all other issues were put on the back burner as european leaders struggled with the rest of us to keep up with events in athens. many want to know how the
european union plans to deal with the debt crisis. >> concerns about greece still cast uncertainty over the g-20 summit. george papandreou said he may scrap a referendum on the bailout deal. but they still need to show they can move past greases the debt crisis. >> -- reece's debt crisis. >> @ deerow is the heart of the euro is the heart of europe, that letting a blowup would blow up in europe. >> european leaders are putting pressure on greece. they want athens to accept the bailout conditions before problems spread. >> we cannot see the facts clearly yet. there are many discussions going on. if greece does not agree to the program, then what we said yesterday holds.
we want to keep reece in the eurozone, but the bureau and its stability are the biggest priority for us. -- the euro and its stability are the biggest priority for us spiri-- for us. >> the great problem is overshadowing proceedings. >> i spoke to joe we connolly in france. i asked him whether the reece crisis has left the g-20 summit in a state of paralysis. >> anything that adds to uncertainty will not be welcome here because after all, world leaders -- particularly the americans, chinese and others are urging to get to the center of this problem. the past few days have sent the markets tumbling and have added to the uncertainty. there were hopes that some of the g-20 leaders would have been
coaxed into perhaps making some kind of. commitment into investing in to the eurozone nearly beefed up -- the eurozone's new the beefed up programs. there will be much more cautious, of course. they will be looking with dismay mat what is happening in greece. russia said, for example, that europe had the political authority and financial resources to deal with this on their own. it is clearly implied that they have not done so thus far. >> i was reading the 40% of its currency reserves are in euros. it has a lot to lose. >is there a paralysis in france? they cannot make a move until they know what the g-20 leaders will do. >> i think the word paralysis is
a good one, especially this morning. anti- 20 leaders were writing and there were bilateral meetings between presidents are cozy and president obama. -- between sarkozy and president obama. they are all trying to work out how they can elevate this crisis out of the morass that it is in. the deal reached in brussels last weekend, it does have traction and it does have wheels. they are trying to accelerate how to leverage and optimize the european bailout mechanism, the ess. uand contradictory signals are coming every five to 10 minutes. >> we will have to wrap it up there. joanie as always, thank you.
-- tony, as always, thank you. these are nightmares for bankers, aren't they? >> exactly, and how do bankers handle it? it could be back could plan"a." and that is four major banks in europe as well. -- that is for major banks in europe as well. this is a bitter pill for the banks to swallow. we go to financial markets expert, mr. geicher. our banks now assuming that they can write off 50% of their greet death? is that possible? >> yes, that is possible, but every day is something new. you do not know what is tomorrow
and we have a very high volatility in the market as a result. banks do not know if they have to look for more money. i would say the best thing would be to give greece the influence and everyone who bought from greece should have their hair cut. >> banks will be needing much more capital anyway. where is it supposed to come from? >>w that campbelcapital they nes equity, and that is very expensive capital. the stock market is not very positive for banks. therefore, it is very expensive. the other way to have less risk on the balance sheet -- but it is not good for the economy, and that is if the state gives the banks of some money.
in the past, the banks got the money much too cheap. >>'$ it appears the -- it may be that the greeks only in view to get out of this is through the drachma. what is your viewpoint? >> that is my view point. it would have been less expensive and earlier than it is now. the hero prices are much too high for greece -- euro prices are much too high for greece. and it is good for the euro. 5>> the european central bank hs made a bold move to try to fix interest rates.
interest rates have been cut byj 1/4 percentage point to 1.25%. >> the new head of the ecb is all smiles for the cameras, even though he has taken over at a time of crisis in europe. in his first big announcement took everybody by surprise, he cut in interest rates. introduced, said mario draghi, to counter fears of recession. >> there is particularly high 4muncertainty and intensified downside risk. some of these risks have been materializing, which makes a significant downward revision to focus and revisions to real gdp growth in 2012 very likely. >> but there were no near -- no
new announcements on the controversy all bond measure. but draghi stressed this is a temporary measure. >> it is not in the treaty, and i have nothing to add to that. it is not in the treaty. >> and with that, he was off to the g-20 summit in southern france, where the discussions on europe's economicu future are certain to continue. >> the stock market was soaring on thursday. the german dax closed today's session up by 2.81%. across the atlantic, the dow tjones industrials have also closed up by 1.76%.
the hero is trading for one u.s. $38. -- for $1.38. new alassane has been failing to gain support for the reforms that european politicians say are necessary to keep the debt crisis from spreading to italy. calls for berlusconi to step down are called -- are increasing. >> many people are exasperated with their government and one nekmji@ c13 >> it seems to me the present situation was created by the government. it's their responsibility. >> what torture. we cannot take it anymore. >> i think there needs to be a change because the creek -- the situation is critical. we have to start over and make a lot of changes. >> prime minister berlusconi's
police arrested several demonstrators, several were injured in scuffles. in new york where it all began, they were back out on wall street. this time, war veterans were expressing their aimanger at the scant job prospects when they return from the tours of duty. >> it is in the best interest of the majority of the american population that we take politics out of -- take corporations out of politics. >> they crippled one of the biggest harbors in the u.s.. among them, union workers,
teachers and local workers. their message, government needs to look after ordinary citizens. >> the people are in charge here. you have to change course. >> the protesters consider the port of occupation as a major victory and plan on maintaining their blockade. >> monica is here to talk more about greece, greece, and greece. >> and its impact on the nyse. the development in greece has affected them. the dow jones industrial average was up by a good 1.75%. the pace of growth in the services sector slowed last month. in spite of the games in new york, the crisis in the eurozone
continues to weigh heavily on stocks. market closed in positive territory. > what is in the mind of traitors? europe. and that is not just for the past couple of weeks, but months. the reason everyone pays so much attention to what is going on in the europe, one, they are a very important trading partner to the u.s.. and on the other side of it, there is pressure on the euro. the u.s. has been doing everything for years now to keep the dollar value down for export into the u.s.
that is why it is so important, what is going on in europe, to wall street. the feeling is that there will not be a referendum. >> and that was james in new york. a meeting in france and not just to talk about greece, but to talk about the wording of more crises. -- thwarting off more crises. >> g-20 leaders meeting in canbnes want to get their original plan for greece back on track. the g-20 countries have proposed tighter controls on the financial markets with the aim of making transactions more transparent. they also want closer my train of hedge funds, and other
higher-risk speculative instrument that are currently not subject to the same strict regulation as banks. and they want larger banks to increase their capital reserves to better shield them against losses. the g-20 plans to publish a list of 29 major banks that would be required to do this. those would be the 29 financial institutions considered too big to fail. banks that could bring the whole financial sector to the brink if they went broke. also under discussion, a global path of financial discussions, as proposed by germany and france. >> russia is about to end its 18-year wait to become part of the world trade organization. germany and russia have come to a -- an agreement that has removed the obstacle. wto membership brings the benefits and risks.
there shield will probably suffer as trade practices change. >> the syrian human rights activists are saying dozens of people were killed in violence on thursday. the record the homes of people ..iin one neighborhood, 20 peop. this comes just after the regime of bashar assad pledged to withdraw its forces from protest centers in accordance with the arab league peace plan. cuba is to allow the buying and selling of homes. it is part of a package aimed at reviving the country's flagging economy. under the new legislation, cubans will be allowed to own a
maximum of two houses or apartments. there will also be a 4% tax on the sales price. in 50 years, cubans have only been able to swap the homes they live in. to thailand, where flood waters are still rising in bangkok. jmany outlying areas are they loosed as waters close into the central parts of -- are deluged as waters are closing in to the central parts of bangkok. after being accused of mishandling the crisis, the government is now doing what it can to win public support. >> it was a carefully staged appearance by cameras and. iresidents were grateful for the supplies she handed out. authorities could only make a
modest pledge to alleviate the situation. >> the people in bangkok first half to get used to using boats rather than cars. we have to take care of the water quality. >> the threat of water contamination is causing concern. the prime minister made a point of dropping disinfection tablets into the flood waters. despite the dramatic situation, many people are determined to sit out the floods. >> i will stay for one or two weeks. i expect the water will go down by then. >> but authorities say could take four weeks before the n some districts, the shops are still drive because of sandbags. life jackets, boots, and flip- flops' are selling out. no one knows how much longer the authorities will be able to protect the city center, or how long the hardest-hit areas will be able to hold out. >> what happens next in greece?
prime minister george papandreou says he is ready to drop plans for a referendum on the eurozone bailout. greece is calling for -- the opposition party is calling for fresh elections and for him to step down. the greek finance minister says snap elections now< will be really bailout payment that happens desperately needs. a- will the real the bailout payments athens really need.